Dáil Éireann Debate, Wednesday - 18 September 2013
1222. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his plans to introduce further tax reliefs to farmers in budget 2014 to allow older farmers to transfer land to younger farmers; and if he will make a statement on the matter. [38398/13]
View answerRecent Budget measures have seen progressive amendments to the taxation code to encourage transfer of land from older to younger farmers.
Retirement Relief on Capital Gains Tax
Retirement relief from Capital Gains Tax (CGT) on land transfers has been available for a number of years where an individual over 55 years disposes of some or all of his land once certain criteria are met. There are two separate Retirement relief thresholds depending on the relationship of the transferor to the transferee. Budget 2012 introduced the following changes to these thresholds with effect from the 1 January 2014, with the 2 year lead in period flagged in advance to allow for an orderly transition:
a) Transfer or Disposal of land to a person other than one's child
For land transfers by persons aged between 55 – 66 years of age where the consideration is less that €750,000 there is full relief on CGT. For land transfers by persons aged over 66 years of age the amount of full CGT relief is only available on considerations up to €500,000 to encourage earlier lifetime transfer of land holdings.
b) Transfer of land to one's child
Irrespective of the amount of consideration for the transfer, full CGT relief may be claimed by a person aged between 55 – 66 years of age on the transfer to his/her child.
For land transfers by persons aged over 66 years of age the amount of full CGT relief is only available on considerations up to €3 million, again to encourage earlier lifetime transfer of land holdings. If the child disposes subsequently of the land within 6 years clawback of the above reliefs applies.
Stamp Duty on Land Transfers
Budget 2012 introduced new lower stamp duty rates for land transfers with a 2% rate now applicable to non-family transfers; a half rate or 1% was introduced for land transfers to close relations until the end of 2014. Prior to Budget 2012 a stamp duty rate of up to 6% was applicable on land transfers. In the most recent Budget 2013 the 100% relief on stamp duty for land transfers to certain young trained farmers was extended for a further 3 year period to end of 2015.
The issue of introducing further tax reliefs in Budget 2014 is a matter in the first instance for the Minister for Finance. The taxation measures announced in Budgets 2012 and 2013 reflected the Government's commitment to the agri-food industry and in particular to the expansion planned in the Food Harvest 2020 strategy, and I will again be engaging with the Minister for Finance before the introduction of Budget 2014 in relation to further progressive taxation measures linked to policy priorities in my Department.
